CHICAGO—Harper Court, a newly constructed mixed-used complex in Hyde Park, was launched in 2009, not the most promising year for real estate, but the gamble has certainly paid off. Clal Insurance, an Israel-based company, just acquired the 223,775-square-foot complex at 53rd St. and Lake Park Ave. for $112 million. This marks Clal’s third acquisition of a US property and second in Chicago.
As reported in GlobeSt.com last March, the University of Chicago hired CBRE to market the property, which it developed in partnership with the City of Chicago. As part of its deal with Clal, the university signed a 20-year master lease for the entire property that company officials say made the deal an attractive investment. The university will occupy all of the office space. Other current tenants include name-brand retailers such as LA Fitness, Starbucks, and Chipotle Mexican Grill, among others.
“As a major mixed-used project, one that is anchored by the University of Chicago, Harper Court is a game-changer for the area and a compelling, long-term, stable and secure investment for Clal,” says Tamir Kazaz, chief executive officer for Clal US.
Clal made its first US real estate investment in 2013 with the purchase of 49% of One South Wacker, a 40-story Chicago tower with 1.2-million-square-feet of office space. And in early 2014, it acquired Infinity Apartments in Edgewater, NJ – its first multifamily asset in the US – for $48 million through a joint venture with Waterton Associates LLC, a multifamily investor and operator. Clal has allocated several hundred million dollars for more US real estate acquisitions and plans to expand both its residential and commercial portfolios.